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In its effort to diversify and increase its revenue stream,
Baker Tech incorporated Baker Engineering Pte. Ltd. and BT
Investment Pte. Ltd. in 2013.
Baker Engineering will focus on design, engineering,
development and fabrication of components and equipment
for theoil andgasandoffshoremarine industry.BT Investment
will explore acquisitions and strategic alliances.
FINANCIAL RISKS
Like any global operations, Baker Tech’s activities are
susceptible to exchange currency fluctuations, primarily in
U.S. dollar and Euro.
To minimise the impact on its financial performance, the
Group adopts natural hedging by procuring resources in the
same currency as the sales currency and undertakes spot
conversion of excess foreign currencies to Singapore dollar
as required.
Most of the Group’s operations are project-based, executed
over a prolonged period of time. With payments made
progressively, the Group can potentially run into credit risks
and defaults. Hence, the Group has established a policy to
impose credit verifications and predominantly deals with
counterparties with high credit ratings. In most instances,
theGroup also collects up-front non-refundable deposits and
closely reviews outstanding debts.
OPERATIONAL RISKS
Operational risks are particularly inherent in themanufacture
of heavy and bulky offshore engineering equipment.
In accordance with the guidelines enforced by the Ministry
of Manpower, Baker Tech has several Workplace Safety and
Health (“WSH”) initiatives in place. A Safety Committee
oversees all WSH procedures in the workplace and regular
meetings are held to review and provide an update on safety
issues.
Risk assessment is also carried out before the start of
production activities and toolbox meetings are conducted by
supervisors daily.
All operational employees of the Group are required to
undergo internal safety briefings, external competency
training, orientation programmes and fire evacuation drills to
ensure preparedness during emergencies.
In the event of an unforeseen global disease outbreak, the
Group has a contingency plan which complies with the
responsemeasures advisedby theMinistry of Health.
By observing internal and external controls, the Group
maximises operational efficiency through the reduction
of downtime and ensures continuity to fulfill customer
obligations.
